He says he will take the idea to the Municipal Association of Victoria to see if other councils agree.

"Only community assets. We'd only be looking at community assets for this type of money, and particular capital works. They could get a tax deduction, the council could get its money and we wouldn't be going to state and federal governments for this money," he said.

A spokesman for Local Government Minister Richard Wynne says the taxation arrangements for councils are a matter for the Commonwealth Government and the Tax Commissioner.